The Dubs division of Fast Company (the parent company) produces wheels for off-road sport vehicles. One-half of Dub's output is sold to the Hoon division of Fast; the remainder is sold to outside customers. Dub's estimated operating profit for the year is shown in the table.

	Internal Sales	External Sales	Totals
Sales	$300,000	$400,000	$700,000
Var Mfg.	$160,000	$160,000	$320,000
Var G&A	$40,000	$60,000	$100,000
CM	$100,000	$180,000	$280,000
Fixed Mfg.	$24,000	$32,000	$56,000
Fixed G&A	$36,000	$48,000	$84,000
Op. Profits	$40,000	$100,000	$140,000
Unit Sales	1,000	1,000	2,000

Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. Hoon division has an opportunity to purchase 1,000 wheels of the same quality from an outside supplier on a continuing basis for $250.00 per wheel.

What would be the full manufacturing cost of a wheel in the Dubs division if production were increased by 50% both for transfer to Hoon and for external sales? Assume there are no capacity constraints. Round to the nearest $0.01.

What is the full manufacturing cost of a wheel in the Dubs division given the current level of production?

What would be the total contribution margin in the Dubs division if production were increased by 50% both for transfer to Hoon and for external sales? Assume there are no capacity constraints. Round to the nearest $0.01

Assume the Dubs division has excess production capacity but can only sell 1,000 units to external customers. What would be the change in Fasts total operating profit if it allows the transfer from Dubs to Hoon to occur at the $250.00 price?

What would be the net effect on Fast Companys total profits if Fast Company allows the Hoon division to purchase the wheels it needs from the outside supplier and the maximum external demand for Dubs divisions wheels are 1,500 units? Indicate an increase in profits with a positive number and a decrease in profits with a negative number, e.g. -10000.